E
Loans
Early Settlement
You're allowed to pay off a loan early — the NCA guarantees this right. The lender might charge an early settlement fee (capped at three months' interest), but you save money overall by avoiding interest on the remaining term. Just get the settlement quote first.
Usage Examples
"Lerato got a R80,000 inheritance and decided to settle her 48-month Absa loan after 18 months. The settlement quote was R38,500 (R12,000 in interest foregone, minus R2,000 in early settlement fees). She saved moola and got free from the monthly commitment."
"Bongani was desperate to get his personal loan settled. TymeBank charged him R950 in early settlement fees, but he saved R15,000 in interest by paying off 30 months early. Worth every rand to stop the monthly stress."
"Thandi requested an early settlement quote from Capitec on her R50,000 loan, thinking she'd clear it if she won the lottery. Their quote showed she'd owe R28,000 in outstanding balance plus R850 settlement fee. At least she knew the exact number to aim for."